Tag: IndiGo

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IndiGo raises fuel surcharge on flights

Air travel is set to become more expensive after IndiGo raised its fuel surcharge on domestic and international flights from October 6, adding to the pressure on passengers during the busy festive travel season.

The country’s largest airline has revised fuel charges in response to a sharp increase in aviation turbine fuel (ATF) prices. The latest adjustment means passengers booking new IndiGo tickets will pay an additional fuel component depending on their route and distance.

The revised charges apply to new bookings made after 12.01 am on October 6. Existing bookings made before the change are not affected by the new surcharge. IndiGo said ATF prices have remained highly volatile in recent months, particularly because of geopolitical tensions in the Middle East.

Domestic passengers will now pay a fuel surcharge ranging from ₹375 to ₹1,300, depending on the distance of the journey. The charge is ₹375 for flights up to 500 km, ₹600 for journeys between 501 km and 1,000 km, ₹900 for distances between 1,001 km and 1,500 km, and ₹1,150 for flights covering 1,501 km to 2,000 km. Journeys longer than 2,000 km will carry a ₹1,300 surcharge.

The increase over the earlier structure ranges from ₹100 to ₹350 per domestic sector. This means the impact will be relatively smaller on short flights but more noticeable on longer domestic journeys.

International travel will also become costlier. IndiGo has set the fuel surcharge at ₹1,000 for SAARC routes up to 500 km and ₹3,000 for longer SAARC routes. Flights to Southeast Asia, the Gulf and Middle East, and North and East Asia will attract a ₹5,500 surcharge, while flights to Africa will carry a ₹6,000 charge. Europe-bound passengers will face a ₹10,000 fuel surcharge.

The revision marks the second increase in IndiGo’s fuel surcharge since April. The airline introduced the surcharge in March as fuel prices began rising sharply. It subsequently shifted domestic charges to a distance-based system in April, with rates ranging from ₹275 to ₹950.

The latest increase reflects the continuing strain that fuel prices are placing on airline operating costs. ATF accounts for a significant portion of an Indian airline’s expenses, making movements in jet fuel prices particularly important for ticket pricing and profitability.

According to IndiGo, the latest month-on-month increase in ATF prices has exceeded 14%, taking fuel costs to among their highest levels in the past decade. ATF prices in Delhi, a key benchmark for domestic airlines, have risen sharply in recent months, adding to the cost of running flights.

The airline has linked the volatility to geopolitical developments in the Middle East. Disruptions and uncertainty surrounding global oil supplies can quickly feed into crude oil and aviation fuel prices. A weaker Indian rupee can add another layer of pressure because aviation fuel prices are closely linked to global energy markets.

IndiGo said the latest adjustment was relatively measured and that a much larger increase would have been needed to fully offset the rise in fuel costs. The airline said it wanted to limit the additional burden on passengers while responding to the changing cost environment.

The timing is significant. Air travel demand typically rises around major festivals as people return home, visit relatives and plan holidays. Higher airfares could therefore have a direct impact on travel budgets, particularly for families booking multiple seats.

Passengers are already facing higher fares on several popular domestic routes because of strong seasonal demand and changes in flight capacity. The additional fuel surcharge could make last-minute bookings even more expensive.

The impact, however, will not be identical across all passengers. The surcharge is linked to the sector or destination, meaning travellers on longer domestic routes and several international sectors will see a larger addition to their ticket price.

The move could also have wider implications for India’s aviation industry. Fuel is one of the biggest variable costs for airlines, and sustained increases in ATF can affect margins, network planning and ticket prices. If elevated fuel costs persist, other airlines could also consider similar measures.

The government is already watching the situation. Civil Aviation Minister K Rammohan Naidu said on October 6 that the ministry is in discussions with airlines and oil marketing companies over the impact of high ATF prices linked to the West Asia crisis.

IndiGo, meanwhile, has indicated that it will continue monitoring fuel prices and make further adjustments if necessary. That leaves passengers facing continued uncertainty over airfares if aviation fuel remains expensive.

The latest surcharge is therefore more than a simple ticket-price increase. It highlights how quickly global geopolitical developments, crude oil prices, currency movements and aviation fuel costs can reach the traveller’s pocket. With the festive season underway, passengers may need to plan further ahead as airlines navigate one of the most important cost pressures facing the sector.

 

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IndiGo raises fees for infants, baggage and add-ons

Travelling with an infant or carrying extra baggage on an IndiGo flight will now cost passengers more. India’s largest airline has revised charges for several ancillary services, including infant travel, excess baggage, unaccompanied minors and priority airport services.

The changes have been introduced as part of a revision of IndiGo’s add-on charges. The higher fees apply to several services that passengers can purchase in addition to their basic flight ticket.

The biggest increase for families travelling with young children is the infant travel fee. IndiGo has raised the charge for infants below two years to ₹3,000 from ₹2,000, marking a 50% increase.

Infants below two years do not occupy a separate seat on the aircraft and travel with an accompanying adult. However, an infant ticket is still required. The revised fee means families travelling with babies will have to factor in an additional ₹3,000 for the infant when calculating the total cost of their journey.

The higher infant charge has been effective since the beginning of September, according to reports citing sources familiar with the airline’s revised fee structure. The change is expected to affect a large number of families travelling with young children.

Passengers carrying luggage above their permitted baggage allowance will also have to pay more.

IndiGo has increased its excess baggage charge to ₹800 per kg from ₹700. The ₹100 increase applies to each additional kilogram carried beyond the permitted allowance.

The higher excess baggage fee could make a noticeable difference for passengers carrying several extra kilograms, particularly on longer trips or when travelling with additional luggage.

The change also means passengers booking low-cost fares will need to pay closer attention to their baggage allowance before reaching the airport. Buying additional baggage in advance may be worth considering for travellers who already know they will exceed their permitted limit.

IndiGo has also increased charges for children travelling without an accompanying adult.

The fee for the airline’s unaccompanied minor service on domestic flights has risen to ₹5,999 from ₹5,000. The revised charge covers the assistance provided to eligible children travelling without an adult.

The service is designed for children who meet IndiGo’s requirements for travelling alone. The airline provides assistance at the airport, during boarding and on arrival, with the child handed over to the authorised parent or guardian at the destination.

The international unaccompanied minor fee has been revised to ₹12,999, according to the latest fee details.

IndiGo’s current rules state that children aged five to 12 travelling without an adult are required to use its Flying Solo service. Children below five cannot travel under the service and must be accompanied by an adult aged 18 or above.

Passengers who use IndiGo’s Fast Forward service will also pay more.

The service, which provides priority check-in and boarding, has been increased to ₹650 from ₹500 for domestic travel, according to the revised fee details. The international charge is ₹850 per sector.

The service is aimed at passengers who want to spend less time at airport queues and receive priority treatment during the check-in and boarding process.

The airline has also revised the fee for travel certificates.

The charge has increased to ₹300 from ₹200. Although the amount is relatively small compared with the other changes, it adds to the list of ancillary services that have become more expensive.

These additional charges are separate from the basic airfare. IndiGo’s conditions of carriage state that the total tariff can include the basic fare, taxes, airline charges, airport fees and charges for add-on services selected by passengers.

The latest fee revision comes at a time when airlines are facing higher operating costs.

Industry sources have linked the changes to rising expenses, including higher aviation turbine fuel prices. Other factors affecting airline costs include currency movements and airspace restrictions.

IndiGo has also faced a sharp rise in fuel expenses. Its parent company, InterGlobe Aviation, reported fuel expenses of ₹10,830 crore in the June 2026 quarter, an 86% increase from the same period a year earlier. The company reported a standalone net loss of ₹382 crore for the quarter, compared with a profit of ₹2,161 crore a year earlier.

The revised ancillary fees provide airlines with another source of revenue beyond base ticket sales. Such charges have become an increasingly important part of the airline business, covering services ranging from baggage and seat selection to priority airport services.

A family travelling with an infant, carrying additional luggage and choosing priority services could see the total travel bill rise significantly once these charges are added.

The revised IndiGo charges therefore make it more important for passengers to check baggage allowances, infant fees and optional services before booking. Comparing the complete fare, rather than only the advertised ticket price, can give travellers a clearer picture of their actual flight cost.

 

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Leaders

Rahul Bhatia says IndiGo will order planes in 2030

IndiGo will likely wait until 2030 before deciding on its next major aircraft order, as the airline wants to assess developments in next-generation aircraft before making another long-term fleet commitment.

Rahul Bhatia, Managing Director and promoter of IndiGo, said the airline would evaluate emerging aircraft technologies and their operational benefits before placing its next large order. The decision comes as IndiGo already has a substantial aircraft order book that provides enough capacity for its expansion plans over the coming years.

IndiGo has grown into India’s largest airline and currently operates more than 440 aircraft. The carrier has also built one of the world’s largest commercial aircraft order books. In 2023, it placed a landmark order for 500 Airbus A320 family aircraft, with deliveries scheduled to begin from 2030.

With such a large pipeline already secured, IndiGo does not face an immediate requirement to place another major order. Instead, the airline plans to use the next few years to monitor developments in aircraft technology and determine which models can offer better fuel efficiency, operating economics and range.

Bhatia’s comments underline IndiGo’s intention to remain an early adopter of new aircraft technology. The airline is particularly interested in understanding how next-generation aircraft evolve before committing to another major purchase that could shape its fleet for decades.

The timing is significant because aircraft manufacturers are working on technologies aimed at improving fuel efficiency and reducing emissions. By waiting until 2030, IndiGo expects to have greater clarity on the performance, availability and commercial viability of these newer aircraft.

The airline’s existing fleet strategy also gives it flexibility. IndiGo has traditionally relied heavily on Airbus single-aisle aircraft, benefiting from fleet commonality in areas such as pilot training, maintenance and spare parts. Its large existing order book means it can continue expanding while avoiding an immediate decision on a new generation of aircraft.

International expansion remains a major priority for the airline. IndiGo has increasingly expanded beyond its traditional domestic network and is building a larger international presence. The carrier has started using Airbus A321XLR aircraft for longer international routes, giving it the ability to connect Indian cities with more overseas destinations without relying exclusively on wide-body aircraft.

IndiGo is also preparing for the arrival of Airbus A350-900 wide-body aircraft as it looks to strengthen its long-haul network. The airline has been reshaping its international strategy while balancing aircraft availability, leasing costs and demand.

The carrier’s existing fleet provides significant room for growth. IndiGo added several aircraft during the last financial year and continues to receive deliveries from its existing order book. This gives the airline time to assess whether future growth should be supported by additional A320-family aircraft, newer-generation narrow-body models or larger aircraft for long-haul operations.

The decision to wait until 2030 is therefore not an indication that IndiGo is slowing its expansion. Instead, it reflects a strategic approach to fleet planning. Aircraft purchases involve billions of dollars in long-term commitments, and choosing a particular generation too early can leave an airline operating older technology while newer and more efficient models enter the market.

For IndiGo, the next major aircraft order could consequently be more important than simply adding capacity. It could determine the technology, economics and operating model of the airline’s fleet for much of the 2030s.

Bhatia’s comments suggest that IndiGo is comfortable using its existing order book to support growth while keeping its options open. By 2030, the airline expects to have a clearer picture of which next-generation aircraft can best support its ambitions in India and international markets.

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Leaders

IndiGo promotes Kiran Thadimarri as CFO

India’s largest airline, IndiGo, has appointed Kiran Thadimarri as its new Chief Financial Officer (CFO), promoting its Deputy CFO to one of the company’s most important leadership roles. The appointment marks a planned leadership transition, with outgoing CFO Gaurav Negi taking on a new role as Advisor to the Managing Director to ensure a smooth handover and support the airline’s long-term strategy.

The appointment takes effect from July 28 and was approved by the Board of InterGlobe Aviation Ltd, IndiGo’s parent company. The airline said the move reflects its commitment to leadership continuity as it continues to expand operations and strengthen its financial position in an increasingly competitive aviation market.

For IndiGo, the transition comes at a crucial time. The airline is continuing to add new aircraft, expand domestic and international routes, and invest in future growth while managing rising operational costs. Strong financial leadership is expected to play a key role as the company balances expansion with profitability.

Kiran Thadimarri is no stranger to the organisation. Having served as Deputy CFO, he has been closely involved in the airline’s financial planning, treasury operations, capital management and strategic decision-making. His elevation is seen as a natural progression that ensures continuity without disrupting ongoing business plans.

A qualified chartered accountant, Thadimarri brings more than 24 years of experience in finance and corporate leadership. Before joining IndiGo, he held senior finance positions across several leading organisations, including InterGlobe Enterprises, Udaan, Genworks Health, and General Electric, where he spent over a decade in various finance roles. His experience spans financial planning, fundraising, treasury management, mergers and acquisitions, business strategy and corporate governance.

Industry observers believe his broad experience will be valuable as IndiGo enters its next phase of growth. The airline has ambitious fleet expansion plans and continues to strengthen its international footprint, making financial discipline and efficient capital allocation increasingly important.

Outgoing CFO Gaurav Negi, who has led IndiGo’s finance function since 2022, will now serve as Advisor to the Managing Director. During his tenure, the airline navigated the post-pandemic recovery, strengthened its balance sheet and supported major aircraft acquisition programmes that will shape the airline’s future capacity.

Rather than exiting the company, Negi will continue to support the leadership team in an advisory capacity. His continued presence is expected to provide stability during the transition and help preserve institutional knowledge as the airline executes its long-term business strategy.

The leadership reshuffle follows a challenging financial quarter for IndiGo. Although the airline maintained strong passenger traffic and healthy revenue growth, higher aviation turbine fuel prices and increased operating costs impacted profitability. Like many global airlines, IndiGo has been working to manage cost pressures while maintaining its aggressive expansion plans.

Despite these short-term challenges, the airline remains the undisputed leader in India’s domestic aviation market and continues to record strong passenger demand. It has also been expanding its international network, introducing new destinations and increasing frequencies on existing routes to capture growing demand for overseas travel.

Analysts say the appointment of an experienced insider reflects the company’s preference for promoting leaders who understand its business and culture. Since Thadimarri has already been closely involved in IndiGo’s financial operations, investors and stakeholders are expected to view the transition as seamless.

Financial leadership has become increasingly important for airlines worldwide. Beyond managing day-to-day finances, a CFO today plays a central role in funding aircraft purchases, managing debt, controlling costs, navigating currency fluctuations and ensuring long-term financial sustainability. These responsibilities become even more critical as airlines invest billions in fleet expansion and digital transformation.

For IndiGo, maintaining financial strength is essential as competition intensifies in the Indian aviation sector. Rising passenger demand presents significant opportunities, but airlines must also deal with volatile fuel prices, supply chain disruptions affecting aircraft deliveries and changing market dynamics.

The appointment of Kiran Thadimarri signals IndiGo’s confidence in internal talent and its emphasis on succession planning. By promoting a leader already familiar with the company’s operations, the airline aims to maintain momentum while bringing fresh perspectives to its finance function.

As IndiGo continues its growth journey, Thadimarri will be responsible for steering the airline’s financial strategy, supporting investment decisions and maintaining investor confidence. With Gaurav Negi remaining closely associated with the company in an advisory role, the leadership transition is expected to be smooth and well coordinated.

The latest appointment underlines IndiGo‘s focus on building a strong leadership team capable of supporting its long-term ambitions. As India’s aviation market continues to grow rapidly, the airline is positioning itself to remain financially resilient while expanding its network, modernising its fleet and strengthening its position as the country’s leading carrier.

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1 Minute-Read

IndiGo launches lite fare

India’s largest airline, IndiGo, has introduced a new ‘Lite Fare’ for passengers travelling with only cabin baggage. The lower-priced option is aimed at flyers who do not need checked luggage, offering a more affordable travel choice on domestic and international routes.

Passengers booking the fare can carry only the standard cabin baggage allowance, while checked baggage can be added later for an additional fee.

The airline said the move is designed to provide greater flexibility and reduce travel costs, while also helping speed up airport check-in and baggage handling for eligible passengers.

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1 Minute-Read

IndiGo clarifies refund dispute

An IndiGo passenger has alleged that she lost nearly ₹40,000 after flight cancellations disrupted her family’s Bali trip. The traveller said she spent around ₹1 lakh on tickets and faced significant deductions during the refund and rebooking process.

The issue gained attention on social media, where she questioned the refund calculations. Responding to the claims, IndiGo said the deductions were due to fare rules, cancellation charges and ticket price differences linked to itinerary changes.

The airline stated that all transactions followed booking terms and conditions and that refund details had been shared with the customer. The incident has renewed debate over airline refund transparency.

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Corporate

IndiGo shares jump 5% despite Q4 loss

Shares of IndiGo surged nearly 5 per cent after the airline reported its fourth-quarter results, with investors and analysts looking beyond a reported loss and focusing on the company’s long-term growth potential.

The stock gained around 4-5 per cent in early trade as several leading brokerages maintained positive views on the airline. Analysts said the quarterly loss was largely driven by temporary factors and did not alter the company’s strong position in the Indian aviation market.

IndiGo reported a loss for the March quarter, disappointing some investors. However, market participants appeared encouraged by management’s outlook, robust demand trends and expectations of improved profitability in the coming quarters.

Brokerage firms including Goldman Sachs, Jefferies and other market analysts highlighted that the airline continues to benefit from its dominant market share, expanding fleet and strong domestic travel demand. They noted that one-off costs and short-term operational challenges had affected quarterly earnings but were unlikely to significantly impact the company’s long-term performance.

Analysts also pointed to improving passenger traffic, healthy capacity expansion plans and a favourable demand environment for air travel. India’s aviation sector continues to experience strong growth, supported by rising incomes, increased connectivity and growing preference for air travel.

Investors appeared to focus on these structural growth drivers rather than the quarterly loss. The positive market reaction reflected confidence that the airline can overcome near-term pressures and return to stronger profitability.

Several brokerages retained their “buy” ratings on the stock and maintained optimistic target prices. They cited IndiGo’s leadership position in the domestic aviation market and its ability to benefit from sustained growth in passenger demand.

The strong rise in IndiGo shares following the results suggests that investors remain confident in the airline’s growth story. Analysts believe the company is well-positioned to capitalise on the continued expansion of India’s aviation sector, even as it navigates short-term challenges.

Experts noted that airline earnings can often be affected by temporary factors such as fuel price fluctuations, foreign exchange movements and operational expenses. As a result, investors frequently place greater emphasis on long-term business fundamentals and future earnings potential.

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Air India, IndiGo to slash domestic flights from June

India’s two largest airlines, Air India and IndiGo, are set to reduce more than 100 domestic flights each per day starting June, leading to changes in schedules across several routes.

The decision comes as airlines continue to deal with operational pressures, including restricted airspace availability, longer flying times and aircraft-related issues. The temporary cuts are expected to affect multiple domestic sectors, though both carriers have said efforts are being made to minimise inconvenience for passengers.

IndiGo, the country’s largest airline, will reduce around 165 daily flights from its domestic network. Air India is also expected to suspend or reduce over 100 daily services. The revised schedules are likely to remain in place at least until mid-July, according to reports.

A major reason behind the changes is the continued closure of parts of northern airspace following recent geopolitical tensions in the region. With some air routes unavailable, airlines are being forced to take longer paths for several flights, increasing travel time, fuel consumption and operational costs.

Apart from airspace restrictions, airlines are also facing aircraft shortages due to maintenance and engine-related problems. IndiGo has been dealing with grounded aircraft linked to Pratt & Whitney engine issues, while Air India has been adjusting operations as it continues fleet upgrades and maintenance work.

The reduced schedules are expected to impact flights on busy domestic routes connecting metro cities and tourist destinations. Airlines have advised passengers to check flight status before travelling and stay updated through official websites and apps.

Both carriers said affected passengers would be informed in advance and offered options including rescheduling or refunds wherever applicable.

Despite the temporary cuts, aviation experts believe domestic air travel demand in India remains strong. Airlines are expected to restore normal operations gradually once operational constraints ease and more aircraft return to service.

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Airlines flag crisis over rising fuel prices

India’s leading airlines have warned of a serious financial crisis due to rising aviation turbine fuel (ATF) prices and have sought urgent government intervention to avoid operational disruption.

Air India, IndiGo, and SpiceJet, represented by the Federation of Indian Airlines (FIA), said the sector is under “extreme stress” as fuel costs continue to rise. They have urged the Centre to revise pricing policies and provide immediate relief measures.

ATF accounts for nearly 40% of airline operating expenses, making price volatility a major challenge. Airlines say global oil price swings and supply issues have further increased costs.

The carriers have also called for a uniform ATF pricing structure across domestic and international routes, saying current differences are adding to financial strain. They have suggested temporary tax relief on jet fuel to ease pressure.

The FIA warned that without timely intervention, airlines could be forced to cut flights or even suspend parts of their operations, affecting connectivity across the country.

While passenger demand remains strong, airlines say high costs are squeezing profitability. Industry observers note that the warning reflects growing financial stress in the aviation sector.

The government is expected to examine the demands as pressure builds to stabilize the industry and prevent possible disruption to air travel services.

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Corporate

IndiGo rises 11% on ceasefire, lower oil

Shares of IndiGo soared 11% this week, becoming one of the top gainers on India’s Nifty 50, after news of a two-week ceasefire in the Iran conflict and a fall in crude oil prices lifted investor sentiment. Lower fuel costs are particularly good news for airlines, as aviation turbine fuel accounts for a large portion of operating expenses.

The Indian government also stepped in with temporary relief, cutting landing and parking charges at major airports by 25% for three months. This move is designed to ease financial pressure on carriers navigating the ongoing disruptions in West Asia.

Despite the market optimism, airlines continue to face operational challenges. Safety concerns and airspace closures have forced Indian carriers to cancel thousands of flights to the Gulf and West Asia, reducing daily services from around 300–350 to 80–90. Longer routes are being rerouted, adding complexity and costs.

Passengers are feeling the impact too, with fewer flight options and rising fares on affected routes. Some airlines have imposed fuel surcharges and revised ticket prices to manage the volatility.

Domestic carriers like IndiGo and Air India are treading cautiously, gradually restoring operations only as airspace stabilizes.

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